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2001 Budget

I am a Florida licensed C.P.A.  I developed the 2001 budget  based on Association audited financial statements of 1997, 1998, and 1999, adjusted for known or expected changes.  I presented this budget to the Board on March 12, 2001 at Susan Diresta’s house, during an emergency meeting to discuss and replace Frank Kneiser’s management company.  The reaction was, “We can’t lower the assessments.  If we lower the assessments we can’t raise them.  People in my section want to have higher assessments.  They want to spend more money.”   At the open board meeting on March 13, 2001, it was stated by a board member that the budget from 2000 would automatically roll over, since there was no new budget.  I have included the 2000 budget so that you can compare the two.

              

  2001 Budget 2000 Budget
    Revenues:    
Maintenance Assessments                      $174,250                  $259,588
Recovered legal expenses                               -0-                     35,000
    Subtotal                       174,250                   294,588
     
    Expenses:    
Maintenance & Repairs                                               
  Utilities - electric                             13,000                     13,000
  Landscaping                          33,000                     61,000
  Streetlight Maintenance & Supply                          23,250                     15,550
  Irrigation                           3,500                       3,500
  Hedge Hog                           3,300                       3,600
    Subtotal                         76,050                     96,600
     
Waterway/Lake Maintenance                          7,000                     50,000
Legal Services                         12,500                     60,000
Management Fees                         36,000                     57,000
Office Expenses                          1,000                     20,000
Insurance                          7,500                      2,000
Printing                          2,500                      6,000
Accounting Fees                          6,000                      2,700
Miscellaneous                         25,000                      6,000
Taxes, Licenses & Fees                             200                         348
Meeting Expense                             500                         500
                        174,250                   301,700
Excess (Deficiency) of Revenues over Expenses                       $      -0-                    $(7,112)
Assessments Budgets per above                   $174,250                             $259,588
Less:    
  Fund Surplus - per April 30, 2001 Balance Sheet                        123,045                   123,045
Total Adjusted Assessments to be Levied for 2001                        $ 51,205                   $136,543
Per Year/Per Quarter                     $60 / $15                 $154 / $39

The Association is to operate on the basis of a balanced budget.  The budget must reflect actual anticipated expenditures.  Revenues must be equal to anticipated expenditures. In other words, money coming in has to equal money going out.   

Fund surpluses must either be used to reduce assessments or be refunded to the membership.  A surplus not treated this way will be subject to corporate tax as accumulated surplus.  In this case, the $123,000 will result in an estimated tax bill in excess of $36,400 plus additional interest and penalties.

Why are we still paying $75/quarter?!  Even using the 2000 budget, we should just be paying $4 more after paying the first two quarters.  Is this why the board doesn’t want to even entertain the idea of drawing up a budget – because the homeowners will see how much they are overpaying? 

According to Florida State Statutes, 720.303 (2) …An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments.  By stating at an open board meeting that the budget just rolled over, the board has openly violated Florida State Law, by assessing $75/quarter without a noticed meeting to discuss and vote on this assessment.  This $75/quarter is not a given that is to be expected every year.  There has to be a budget to show where the money is going.  This board was not elected to continue the way of the old board, but to change.

 

Where is the change from the old boards?

 
Last modified: June 13, 2001

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